Conservative or Liberal, Deist or Pagan, Jersey transplant or Lehigh Valley native, we're all in this mess together. Let's talk. Let us do no harm. Today's one-liner: "The shortest way to the distinguishing excellence of any writer is through his hostile critics." Richard LeGallienne

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Friday, July 10, 2015

Feds Looking at NIZ Companies, Campaign Contributions

Though I usually avoid posting on weekends, I heard from someone on Friday who has seen the subpoenas and warrants served on Allentown.City Hall. As everyone knows, Reading City Hall was served with subpoenas and warrants. They were all authorized by Judge Legrome D. Davis, a federal district court judge. State Rep. Michael Schlossberg has seized on this as a reason to suggest that the investigation is limited to just Michael Fleck, who was campaign consultant to both city mayors.

That's a mistake, as review of the Allentown subpoenas and warrants make clear.

In the Allentown subpoenas and warrants, the FBI sought information concerning campaign contributions to any Allentown elected officials. In addition, they wanted the Mayor's interactions with about a half dozen high-powered law firms as well as about 20-25 companies doing projects on Allentown's Neighborhood Improvement Zone (NIZ).

The paperwork specifically lists J.B. Reilly's companies. So far as I know, this is the first indication that this investigation actually involves the NIZ.

Reading has nothing to do with the BIZ. But Schlossberg's own finance reports reveal that he does. I'll tell you about that on Monday.

Updated 10:00 pm. Ionically, The Morning Call was working on this story as well, and its story published shortly after mine. It includes more detail, including an Abe Atiyeh connection. Atiyeh had been suing Pawlowski over billboards, but after hiring Fleck as a "consultant," things suddenly changed in his favor.

Then theres the matter of influence pedaling. What a mess to sift through in the upcoming election for city council. Shame on the republicans for not fielding candidates and giving us choices. also how about taking down the city of allentown flag at city hall and raising the flag with the symbol of the almighty dollar.

9:43 said: "Shame on the Republicans for not fielding candidates and giving us choices"

So it's the Republicans fault that it takes an FBI raid for this city to even consider voting for them. Sorry, but there have been numerous quality people that have run for council as Republicans, only to be rejected for the future convicts now in office. If there's any shame, it's on the voters of Allentown.

If you want choices this time around, vote Hershman for Council and Ramos for Controller. Doesn't matter what you think of them, they'll take their jobs seriously and aren't connected to the people in charge right now.

Above all, you're sending a message that you won't tolerate what's been going on for the last decade any longer.

•J.B. Reilly (CEO of City Center Investment Corp., which has built or proposed nearly $500 million in office, hotel, retail and apartment development in Allentown's 127-acre Neighborhood Improvement Zone)

Schlossberg's potentially the most dangerous of all of Allentown's local politicians.

By that I mean I don't know that he has any real world experience in anything but politics and was groomed by many of those already known to be involved in this scandal.

Add the fact that he's extremely partisan, and in a state house district so safe he didn't even have an opponent, there's really little to hold him accountable for anything (other than possibly the FBI, now or in the future).

The Morning Call coverage is so much better than that rag, Express Times. Their headline article talks about Fleck being a fighter and not backing down. That is real hard-hitting journalism. What a joke that rag is.

I also find this part very interesting..."Documents of any kind — financial documents, communications or emails relating to any Allentown City contracts and campaign donors to any Allentown City official from 2005 to present."

Does that mean they could also be looking into current city council members and past council members? Seems this whole thing has the recipe to blow up very big.

I am an embarassed voter. I grew up in Bethlehem and took pride in voting as a young 18 year old. I now live in Allentown and vote. I will, admittedly state, that I never took enough time to actually consider who I was voting for other than on a superficial basis. Examples....1. Pawlowski seemed to be doing a great job and got my vote. 2. Schlossberg helped me in a personal situation and seemed nice enough. Got my vote......I am a huge part of the problem. Now old enough to have children of my own, I cart them to my local polling place and teach them it's important to vote. They get stickers and a cookie and I go home feeling like I did a good deed. Hell, I voted. I showed up! It's only once this story that broke (and my diligence in feeling I should be more proactive that led me to this blog.) I am intelligent enough now to do my research and believe half of what I read anywhere. I applaud you Bernie for telling things the way you see it. Your views make me question all parties and remind me that, all though I see the good in all people, circumstances also change these people and have an effect on me. I hope this FBI raid does more for the uninformed voters, like myself, than it does the people who may have done such selfish acts at the expense of a community. We need to do.more to stop the cycle from occurring again for the next generation's children. I am a bigger, or was, a bigger piece of the problem.Sincerely,Bowing my head in shame

Not sure they are asleep at the switch in Easton (always a possibility) or just embarrassed that one of our exported former council members is a crook (what a shock). Not to pile on here...well actually yes, I am piling on. In 2012 I was part of a group of 15-20 citizens in Easton that asked for a public hearing to discuss the possibilities of a Citizens Bill of Rights for the city. As Bernie has pointed out, we have no democracy in America today. The best way to re-establish it is by first re-establishing the right to govern at the local level - most effectively through first re-establishing those rights in a formal document.

One or two of our group met individual with each member of council and the mayor one at a time before we presented to the public. All of them supported it in private. As soon as the meeting started Panto and his trained monkey Fleck attacked us like we were anarchists wanting to destroy the city. While the meeting was still going on Fleck was tapping away on his laptop, sending emails to Alan Jennings of CACLV to complain that Esther Guzman and I (at the time employees of West Ward Neighborhood Partnership) were leading a citizens' revolt against the government.

After the meeting ended councilperson El Warner told Esther that she rode down in the elevator with Fleck after the meeting and he was bragging about how he was going to get us fired. If I tried I could probably remember twenty more of these stories.

Just another day of public service for Easton's rising star.

I guess Mr. Fleck - unlike Mr. Smith - won't be going to Washington after all (unless its to testify).

Someone using the false name "Nick Bussells" came on this blog primarily to trash my grandson. He claims to have had discussions Friday bight with other fans at Cedar Beach. He also basically claimed my grandson will fail because of my political views. Since CCHS had no games at Cedar Beach tonight, this person is a liar. There is little doubt in my mind that the liar is none other than the Blog Mentor, who is being sued by DA Jim Martin for defamation. You are a sick asshole. I am disabling additional commentary here.

Full disclaimer and transparency(things I naively thought were human nature). I do have a dog in this fight. (It's a tea cup pomeranian by comparison) So many people and neighborhoods, I believed share interest in filling my family's mission, have come up in these conversations. It has left my mind blown as to what goes on behind the scenes and just how much money/greed/politics are involved in what our work is and what the legacy we want to leave behind for our children. Does this make me a liberal? I am starting to feel like there is no such thing as a win win situation.

Boyle, Hickey.. Good Lord what's next, Callahan, Cunningham, Muller?? If any of this is true, the Feds have broken into the Lehigh Valley Political illuminati. The money talks other walk has been going on for some time and the players are all around. Contributions, jobs, donations.. it has been quite a ride.

A few sate rep's may be getting visits based on their connections to all of this, time will tell.

Anonymous said... Schlossberg's potentially the most dangerous of all of Allentown's local politicians.

By that I mean I don't know that he has any real world experience in anything but politics and was groomed by many of those already known to be involved in this scandal.

Add the fact that he's extremely partisan, and in a state house district so safe he didn't even have an opponent, there's really little to hold him accountable for anything (other than possibly the FBI, now or in the future). 10:39 PM

Wasn't Schlossberg one of the top spenders in a recent legislator expense story?

I bet if you look into CACLV's (S3) oversight of Federal Funding on construction projects on the NIZ (or lack of, I herd they fired the oversight officer years ago when construction started on the PPL Arena) its contributions and the NPP Tax credits that the organization receives you will find even more improprieties. Alan Jennings sits on the NIZ Authority..Hmmmm

This isn't NIZ or Allentown specific. There are far too many absolutely incestuous relationships in the land development realm Lehigh Valley wide. Look at the Lower Mac shopping center TIF. NMM (named on subpoena list including LMT solicitor) represented the township, township planning commission, county and the industrial development authority. All at the same time.

That's the problem. A handful of connected land use attorneys play all sides in almost all cases.

Excuse me? Reilly is offering you a bullshit burger smothered with more bullshit and you swallowed it. Guess what? ANIZDA is completely under the control of Pawlwski, Browne and Mann. They make the appointments, and make sure their toadies are on board. Sara hailstone, the ANIZDA Exec Director, is the City's DCED Director. The companies benefiting from the NIZ are contributing to Pawlowski and the candidates he wants supported. Reilly's statement is pure nonsense.

Having said that, I would need to see lots more before concluding that he is guilty of anything other than greed and bad judgment.

"This isn't NIZ or Allentown specific. There are far too many absolutely incestuous relationships in the land development realm Lehigh Valley wide. Look at the Lower Mac shopping center TIF. NMM (named on subpoena list including LMT solicitor) represented the township, township planning commission, county and the industrial development authority. All at the same time. "

@12:58 oh no. You mis-interpet. I'm not by any means normalizing it. That wasn't the point. I'm saying... it's just as bad everywhere. Across the Valley. Not NIZ or Allentown specific. It's just par for the course. All the same players working together in the burbs as much as the city. Again, land development in the entire Lehigh Valley is as Bernie said filled with crony capitalism.

Reilly and City Center have done nothing illegal. The NIZ was created 2 years before Reilly knew about it and the mayor approached many developers before he contacted Reilly, the mayor has done great things for this city, why wouldn't Reilly support him by donating money? and the state makes sure that the $54 million is not used illegally. The ANIZDA board is not sun by the city, they are not city representatives making the decisions, Reilly was able to do what he has done simply because he knows the he needed funding (others did do that), he needed to have clear plans that ANIZDA could know exactly what is happening. others who tried to get into the NIZ didn't know enough to have their shit together in a way that they could get things approved, Reilly did.

@2:58, actually, reilly was fronted the seed money to buy buildings in the zone before the anizda board was even filled. but, what's more amusing, is the time and effort you're spending as an apologist for pawlowski, anonymously no less.

2:58, I have no reason to think Reilly acted illegally bc the NIZ legislation enabled him to divert state taxes legally. My sources tell me the state legislation proposed by his childhood friend Pat Browne was actually crafted by him. This had been in the works for some time, and is likely why Pawlowski started making life tough for Hamilton Street merchants in 2007. As for state oversight, this was set up to avoid that. The state usually requires bid contracts, but that was winked at here. As for the ANIZDA Board, they actually are selected by the City. I addressed that above and won't repeat myself.

I will be glad when we have Chicago out of our city and we again have Pennsylvanian leadership in City Hall.

The entire NIZ/ANIZDA board/Reilly/Browne/Schlossberg reminds me of a very closed Fraternity. It's unclear how this is related to the influence peddling that clearly appears to have gone on in Allentown City Hall, but with a billion dollars in commonwealth money flowing though Allentown, I'm sure that a good deal of it has stuck to the pockets of the players involved. It would be incredible that it did not. Lets not forget Browne's wife, who is even more corrupt than her alcoholic husband. I suspect that most of those involved in the NIZ development were, if not directly involved, were fellow travelers in this scheme.

OK now what happens after the daylight is let in and the resignations, and ramifications have ended? Allentown will be here, of course. And the buildings on Hamilton Street will be there, more or less. It's likely that what has not been built will never be built, so we have what we have.

The rent subsidies will likely end, and I expect many of those businesses that Reilly recruited to fill his City Center buildings will leave. The Renaissance will close, although as long as the Phantoms fill the seats, they may stay in Allentown if they are profitable. Allentown is, after all, an hour from Philadelphia and there are advantages of being at the AAA level close to the major team.

The office space, at least the lower floors, may even find re-use as storefront retail and perhaps LANTA will return city bus service to Hamilton Street. The apartments may be taken over by the Allentown Housing Authority as senior living centers as the old Allentown Bank building is.

Allentown, however, will be in serious financial straits. Quite honestly, a municipal bankruptcy may be the only remedy to return the city to a sound financial basis..

As the morning call once pointed out Reilly had purchased several properties downtown before the NIZ was made public. They put a nice map on the from cover of the paper that pointed out all of these properties. When you look at the NIZ it jumps out in certain areas just to include Reilly's properties. While this is very suspicious it may not be illegal. Time will tell.

However Reilly's first NIZ grant was given out before there was ANIZDA and before there was a way to apply for NIZ funds. It was all back room deals and was reported in the morning call. I may be wrong but I want to say $700,000 was given to city center before there was a way to apply for NIZ grants. This money was used to buy much of the block across the street from the arena including the former house of chen. I personally called the state ethics hotline and reported this fact (quoted from the morning call) to their answering machine. I know others said they were going to call the state ethics hotline and file similar complaints. Honestly I called it on a lark. I didn't think the state would ever investigate their own misdeeds but I may have been incorrect. I can not take all the credit for this but as anyone who read the flyers I used to write for Occupy Allentown knows I have been bringing attention to these issues since they first started to rear their head.

Maybe someone should look into exactly how many clients Scott Allinson has in come with everyone. For years he has been a very quite strong force behind the scenes. Only A few people have ever stood up to him.

elijah, actually reilly was loaned $20 million by national penn bank before the anizda board was formulated. it was these funds that he used to purchase the properties, and use also as down money on the new construction. although this is not my usual MO to make such an announcement, my planned blog post on monday happens to address these questions.

It's been a while since I've looked at all the NIZ numbers. Kind of put it behind me when I moved out of town. Too much cronyism. Thanks for the reminder of the $20 mill number, I look forward to your Monday blog post.

Honestly this whole thing makes me feel a bit vindicated after all I and others who called out Mr. Mayor went through what with the ridicule by Julio in council chambers, dirty looks from the mayor before he ran and hid rather then answer any questions I might ask him, threats from random people stopping by my camp site at 7th and Hamilton, etc. Feels good to see something come of it all even if from a distance. Good luck, if this keeps up I'll come visit the city that has the motto "sic semper tyrannis" again. I like it more the the city without limits.

Allow me to respectful point out MM, Elijah is hardly a Republican, although he has been a courageous and unrelenting critic of this arrogant administration. If you had the pleasure of knowing his mother as I did this won't surprise you.To suggest Democrats haven't stood up to this administration is incorrect at best, disingenuous at worst."Don't TAZE me Bro!"

How could any underhanded land holding aqwisitional tecniqs tools be legal in the injustice system in the county seat epicentralized¿ Than there iz the bigger bigger fish question who and what legal team were the ones fileing this ponzie scheem and changing of the deed records that put to print could be risking a catastrophee and putting the public in risk of LIFE¿

There is conflict of intrest in a cognazant complicite land holding deals in the Hole of the valley and beoned¿

Agreed. This is Allentown City Council's chance to stand tall and stand down, or to keep their seats and cover themselves with shame. Immediate action to pass tough anti pay to play ordinances is a must. And Jeanette Eichenwald should be drafted to be appointed mayor.By the way, this is not the Republicans' fault for not fielding candidates. The fact that Allentown is completely dominated by the Democratic Party so that it has been impossible to offer voters a real choice in any of the city wide primaries results in voter apathy and cynicism because the voters realize they really don't have a say in who represents them.

Berbie, this is really turning into some story. Everyday more and more. The names in the MC are a who's who of political peddling and money in the LV.It will be interesting to see if any other elected officials are mentioned. Sate rep's like Schlossberg and McNeil have deep roots with these guys.

Mike Schlossberg will be interesting to watch. he came into the area via Muhlenberg. He was groomed by some LV illuminati. Both Toni Iannelli and the chamber and the Don Cunningham were his mentors and political sculptors before he was handed off to Jenn Mann. Will be interested in seeing how far all of this goes.

No secret talking to old pols who are surprised this didn't happen sooner and involve many more people. Glad to see the Brooks Brothers have not been mentioned. They seem like decent guys who just want a successful hockey franchise in the Valley. I hope the arena stays and the team does well, it is the one bright spot in all of this.

Your right, I'm hardly a Republican, but I'm hardly a Democrat either. I've been an outspoken supporter of 3rd parties since I was old enough to vote. The Republicans in this country are a far right party, the Democrats are a center right party. I stand firmly on the left, so far left it starts to wrap around to the right. I will say that some Democrats have been questioning Pawlowski for some time but I am not one of them. I'm a registered green party member and my ideology is closest to the anarchist views of Mutualism. Small, decentralized local governments with a mixed market, plenty of oversite, direct accountability to the people, and freedom for all.

Sorry to make a comment that is not related to the blog post but I really dislike being labeled a Democrat despite sharing some of their stated views.

So far, the Morning Call has provided cover for Pawlowski's cronies. We now have the subpoena list. I doubt we will see the Morning Call report on which Pawlowski backed candidates received contributions from interested parties or PACs that they contributed to. Funny how a few weeks ago they were reporting on Pawlowski the King maker. Guess there will not be a Christmas in July party flyer with different level of sponsorship.

Globally speaking yes they are, here we call them left but it's a joke. Despite the propaganda used against you to trick you into being part of a divide that keeps the people from rising up against the corruption around them. Look at the policies. Locally people like Pawlowski take from the tax base and use it to not fund social programs but rather try to bring in more money by spending more money on private development. He ran last election on the fact that he had not raised taxes despite underfunding the local school system. Even when people were touting his as the savior of Allentown the things they thanked him for were on the right end of the spectrum. On the national level the same can also be said for Democrats. The AHCA or Obamacare if you will is not a left socialist single payer healthcare system it's a right corporate welfare mandatory insurance gimmick. Obama's international policies have been to send more troops to a wider range of countries then even Bush did, very right wing of him. He continued to bail out private business with the bank bailouts and he has put corporate lawyers from Monsanto in charge of the FDA. His attorney general set up a right wing style sting operation that backfired much the same way the Iran/Contra sting backfired in the 80's. He raided medical marijuana clinics that were complying with state law, continued Bush era levels of domestic surveillance, etc. So yes the Democrats are a center right party and it was those center right views along with a healthy level of corruption that have Allentown in the place it is now, and not a paddle in site.

The Executive Director is an at will employee of the Mayor and 3 members of the board are appointed by the Mayor, 6 are appointed by the State Senator and Rep. Isn't most of the money in the NIZ Authority tax money? If that is the case is this not money laundering. Starts as tax money, gets moved to the NIZ controlled by politicians that normally must operate under some rules, however weak, of transparency and accountability, than no longer "tax money" and they no longer have to follow the rules?

Easton is totally happening.Every night is cool. Trash talk it all you want,parking is already tight so do stay away.Bethlehem is sweet too.Fuck the bogus Allentown "renaissance".It's a ghost town on nonevent nights.

I am seeing some comments that ANIZDA is a separate authority from the city about the ongoing FBI investigation. Even though that is true look at the board members and compare the facts. Here is some interesting information from a Morning Call article dated March 4, 2014. "One of Mayor Ed Pawlowski’s most generous campaign contributors has been nominated for a position on the board that governs development in the city’s Neighborhood Improvement Zone." "Also nominated is Nelson Diaz, a property manager who already sits on the board." "Foucek would join several ANIZDA members who contributed to Pawlowski’s gubernatorial campaign. Chairman Sy Traub gave $1,000 and Diaz contributed $2,500. Bill Grube Jr. donated $500. Foucek’s $5,000 donation recorded in December was among the 10 largest Pawlowski received from private contributors."You have to admit it is interesting that those who were nominated to the board donated to Pawlowski's campaign. Is this another sign of pay to play politics in Allentown?

The whole rotten edifice is a nasty farce.Corruption. Stinking foul rotten.Cunningham is a central piece of shit in the putrid affair, Jennings too.ROTTEN!!!!!!!!!!!!!!!!!!STINKS TO HIGH HEAVEN!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

With the exception of Councilwoman Eichenwald, all other City Council members should resign. They are puppets of the Mayor. They voted most recently to raise parking rates in the downtown. They voted yes with nothing to show the public, no survey, no study and no plan. The City, the Chamber of Commerce and the Parking Authority LIED to the public and said that studies and surveys were done. Not one Council member had and information to back their yes vote. I feel they voted yes because the Mayor told them to. They all need to resign when the Mayor resigns. They have failed the citizens of Allentown.

What I find so interesting is that the year is 2015 and only now the feds are catching up with Mr. Fleck. Anyone who has known him in the last 10 years knew his future would end up here if he continued in politics.